2. Overview of RAVE
Sonites - Electronic Devises:
• ROCK
– Starting retail price $483
– High end – many features, high performance and cost
– Target Markets: Professionals and High Earners
• ROLL
– Starting retail price $538
– High end – many features, high performance and cost
– Target Markets: Explores
• ROAR
– Starting retail price $299
– Low end – few features and design functions, low cost
– Target Markets: Shoppers and Savers
Apollo R RAVE prepared by Sheryl Sousa 2
3. Overall Performance for RAVE
2500
2000 Period 0
Period 1
1500 Period 2
Period 3
Period 4
1000
Period 5
Period 6
500 Period 7
Period 8
0
SPI
Apollo R RAVE prepared by Sheryl Sousa 3
4. Period 1 Decisions
Initial Considerations:
• Brand Evaluation
• Segmentation
• R&D Project
Brand (period) Brand Awareness Purchase Market Share
Intentions
ROCK (Period 0) 49.7% 12% 13%
ROCK (Period 1) 54.4% 21% 18%
ROLL (Period 0) 44.7% 5% 5%
ROLL (Period 1) 40.7% 3% 2%
Apollo R RAVE prepared by Sheryl Sousa 4
5. Period 2 Decisions
Performance heading into Period 2
Brand Brand Market Share Brand Market Share
Awareness (Professionals) Awareness (High
(Professionals) (High Earners)
Earners)
ROCK 71% 73% 33% 76%
TONE 18% 69% 55% 77%
LOOP 8% 61% 10% 70%
Review of Decisions for Period 2:
• Removed ROLL from the market
• Launched ROAR
Apollo R RAVE prepared by Sheryl Sousa 5
6. ROAR
R&D Considerations:
• Built similar to competitors in Shoppers segment
• Low base cost: ROAR ($66), MOVE ($75), SOLO ($99)
• Positioning
Competing for the Shoppers Segment: Period 2 Performance:
Brand Market % Ss Ds Mm Retail Econ. Perf. Conv.
Share Aware Price
ness
ROAR 10% 37% 2.7 2.4 5.4 $299 8.4 -11.9 2.1
MOVE 24% 75% 6.4 7.5 9.3 $311 2.4 -8.3 -7.4
SOLO 23% 76% 5.7 5.5 6.9 $304 0.9 -6.5 3.0
Apollo R RAVE prepared by Sheryl Sousa 6
7. Period 3&4 Decisions
Market Share
Brand (segment) Period 2 Period 3 Period 4
ROCK (Professionals) 71% 63% 57%
ROCK (High Earners) 33% 39% 40%
ROAR (Shoppers) 10% 20% 15%
Brand Awareness
Brand (segment) Period 2 Period 3 Period 4
ROCK (Professionals) 73% 74% 80%
ROCK (High Earners) 76% 76% 81%
ROAR (Shoppers) 37% 72% 82%
Apollo R RAVE prepared by Sheryl Sousa 7
8. Period 5 Decisions
• ROCK
– Increased advertising budget from $7K to $7.5K
– Commercial team remained at 107
• ROAR
– Increased advertising budget from $6.7K to $8.4K
– Commercial team remained at 119
Apollo R RAVE prepared by Sheryl Sousa 8
9. Period 6 Decisions
• ROCK
– Reallocated advertising budget to commercial team
• Ad budget decreased from $7.5K to $3.6K
• Commercial team increased from 107 to 202
• ROAR
– Repositioned to target 75% Savers & 25% Shoppers
– Reallocated advertising budget to commercial team
• Ad budget decreased from $8.4K to $6K
• Commercial team increased from 119 to 200
– Lowered price from $299 to $209
Apollo R RAVE prepared by Sheryl Sousa 9
10. Period 7 Decisions
Decision Area ROCK (P. 6) ROCK (P. 7) ROAR (P. 6) ROAR (P.7)
Ad Budget $3,666 $2,352 $6,000 $2,250
Commercial 202 150 200 157
Team
Retail Price $449 $455 $209 $185
Target Segment 50/50 Prof./Hi 100% Prof. 75/25 Shop/Sav 100% Savers
Results for Period 7:
• Increased SPI from 1888 to 1900
• Revenues from 88 to 90
• Before tax earning 32 to 40
Apollo R RAVE prepared by Sheryl Sousa 10
11. Period 8
• RAVE finished in a solid second place overall
• ROCK
– 2nd in market share among Professionals
– 2nd in market share among High Earners
• ROAR
– Led in brand awareness overall
– 2nd in market share among Savers
– 3rd top selling brand overall
Apollo R RAVE prepared by Sheryl Sousa 11
12. Lessons Learned
• Brand Portfolio
• Segmentation
• Pricing
Apollo R RAVE prepared by Sheryl Sousa 12
